Retail sector migrating rapidly to mobile optimised web says Adyen
An extremely interesting insight into how the online transactions industry is progressing was provided when GoMo News met with Roelant Prins, Chief Commerce Officer, with Adyen. Prins joined the company when it was just a Dutch company but now Adyen is truly global. Although Adyen supports no fewer than 250 payment methods, Prins was sharing his company’s knowledge of what is happening in the mobile sector with us. Data from the just released third Adyen Mobile Payments Index showed that mobile contributed an average of 18.5 per cent to global transactions over the four months of September to December .
It’s interesting to note what kind of transactions Ayden is tracking. The company has very little to do with direct carrier billing, Prins admitted – so that sector isn’t really covered by the index.
Nor are the millions of mobile micropayments carried over specialist systems such as M-Pesa in Africa.
However, the trends in mobile payments were very easy to spot.
For example, Ayden splits payments for ‘travel’ by which it means big items like flights from smaller payments which it calls ticketing.
If you look at average payments for travel, then the split is PCs – €131 vs tablets – €89 versus smartphone -€44.
With ticketing it is tablets – €46 versus smartphones – €44 versus PCs – €42.
As readers can spot immediately, there are variations as to which device is used by consumers for specific transaction types.
Ayden believes that the tablet – with its combination of a bigger screen, touch interface and portability may account for a better browsing experience and longer shopping sessions.
Whereas at work or during commuting, smartphones and PCs may be used for spontaneous, lower value purchases.
Mobile transaction volume in retail has also risen by a third, up to 23 per cent.
This is where Prins explained that retail is leading the transactions market currently. The most important customers for his company are the big retailers.
And it is the retailers who are moving rapidly towards mobile optimised web sites.
The data shows that retailers who only have desktop orientated web sites aren’t getting the transaction volumes that their rivals do.
One thing which didn’t come out in the Mobile Payments Index is the great extent by which payment methods vary from territory to territory.
In Brazil, for example, you’d be mad if you didn’t support a system known as Boleto whereas the Dutch favour a system called Ideal.
Additionally, the UK market is quite advanced – Prins revealed, because consumers are prepared to accept systems such as ‘Verified by Visa’.
As Prins told GoMo News, “One good [online shopping] experience is all it takes and consumers will revisit the site.”
This adds another stage into the payment process and Ayden normally finds that its inclusion leads to a payment not being concluded.
But not in Britain, where the Brits have apparently got used to it.
There are lots of juicy stats in the third Ayden Mobile Payments Index, so we have published the full summary here.
It makes for really interesting reading – especially for those in retail.